DBC Offers Support For Mortgage Insurance Fund Legislation

Hakeem Jeffries

The DuBois Bunche Center for Public Policy has offered its enthusiastic support for a bill now before the Legislature in Albany that would aim to create more affordable housing. The bill calls for the state providing assistance to developers to refinance troubled loans in amounts as high as $150 million in order to encourage them to convert their financially troubled condominium and rental projects into moderate-income rental apartments.

The bill was authored and introduced by Assemblyman Hakeem Jeffries, a Democrat who represents several central Brooklyn neighborhoods, including Fort Green and Clinton Hill. Under the terms of the legislation, developers would be allowed to refinance their loans in exchange for making nearly half of the units available for below market rates.

Mr. Jeffries’ legislation comes after he identified dozens of stalled or empty condominium projects in Brooklyn, including some that are completely vacant. He conducted a survey of new developments in the five Brooklyn neighborhoods he represents as part of his efforts to promote the creation of affordable housing. He is in the early stages of approaching developers and banks behind some of these properties with a proposal to convert the unsold units into affordable housing.

“The bill introduced by Assemblyman Jeffries represents a constructive solution that addresses the housing crisis and the financial crisis,” said Roger Green, the executive director the DuBois Bunche Center. “It could serve as a positive public policy response to these vexing problems.”

Mr. Green urged legislators to support the bill, saying it would help ease two areas of economic difficulty.

“Currently in urban centers, we’re fining that the escalating cost of housing has created a situation where many residents have been displaced,” Mr. Green said. “Some call this gentrification. Others define it as pervasive re-segregation. This problem was compounded as a result of the crash of the global financial markets, which hit the housing market very hard. And passing this bill would offer significant assistance to those affected by the downturn, particularly for those looking for affordable housing.”

Read the text of the bill.